Medicare for Higher Income
Medicare for Higher Income
2023 Medicare Costs + Coverage Updates
The Centers for Medicare & Medicaid Services (CMS) have released the Medicare costs and coverage information for 2022.
PART A - COSTS
PART A (Hospital) Premium
Most people don't pay a monthly premium for Part A. If you do buy Part A, you'll pay up to $499 each month if you paid medicare taxes for less than 30 quarters. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $274.
PART A Deductible + Coinsurance
- $1,600 deductible for each benefit period
- Days 1-60: $0 coinsurance for each benefit period
- Days 61-90: $400 coinsurance per day for each benefit period
- Days 91 and beyond: $800 coinsurance per each "lifetime reserve day" after day 90 for each benefit period (up to 60 days over your lifetime)
- Beyond lifetime reserve days: all costs
PART B - COSTS
PART B (Medical) Premium
Those enrolled in Part B will pay at least the standard $164.90/mo premium (based on income). Higher income earners will pay a Part B IRMAA (Income Related Monthly Adjustment Amount) in addition to the $164.90/mo standard premium.
PART B Deductible + Coinsurance
- $226 deductible per year
- After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services, outpatient therapy, and durable medical equipment (DME)
Part B Income-Related Adjustments If your MAGI (Modified Adjusted Gross Income*) in 2021 was… | |||
---|---|---|---|
File Individual Tax Return | File Joint Tax Return | File Married + Separate Tax Return | What You Pay to Medicare (per person) Each Month in 2023 (Part B premium + IRMAA) |
$97,000 or less | $194,000 or less | $97,000 or less | $164.90 |
$97,001 to $123,000 | $194,001 to $246,000 | Not applicable | $230.80 (164.90 + 65.90) |
$123,001 to $153,000 | $246,001 to $306,000 | Not applicable | $329.70 (164.90 + 164.80) |
$153,001 to $183,000 | $306,001 to $366,000 | Not applicable | $428.60 (164.90 + 263.70) |
$183,001 to $499,999 | $366,001 to $749,999 | $97,001 to $402,999 | $527.50 (164.90 + 362.60) |
$500,000 + | $750,000 + | $403,000 + | $560.50 (164.90 + 395.60) |
PART D - COSTS
Higher income earners who are enrolled in Part D Prescription Drug coverage also pay a Part D IRMAA in addition to the monthly insurance premium for a Part D prescription drug plan or Medicare Advantage plan that includes Part D coverage (see table below).
Part D Income Related Adjustments If your MAGI (Modified Adjusted Gross Income*) in 2021 was… | |||
---|---|---|---|
File Individual Tax Return | File Joint Tax Return | File Married + Separate Tax Return | What You Pay To Medicare (per person) Each Month in 2023 |
$97,000 or less | $194,000 or less | $97,000 or less | your plan premium |
$97,001 to $123,000 | $194,001 to $246,000 | Not applicable | $12.20 + your plan premium |
$123,001 to $153,000 | $246,001 to $306,000 | Not applicable | $31.50 + your plan premium |
$153,001 to $183,000 | $306,001 to $366,000 | Not applicable | $50.70 + your plan premium |
$183,001 to $499,999 | $366,001 to $749,999 | $97,001 to $402,999 | $71.00 + your plan premium |
$500,000 + | $750,000 + | $403,000 + | $76.40 + your plan premium |

Money Saving Tip:
If a retiree's current income is lower than the most-recent tax return, they may be eligible to appeal a Medicare premium surcharge — but only if the income drop is the due to specific life-changing events such as death of a spouse, divorce, marriage or retirement. If that is the case, clients should immediately respond to the premium surcharge notice, known as an income-related monthly adjustment amount (IRMAA) letter they receive in the fall, and follow the instructions on how to appeal the surcharge.